Potential Client 15 years behind with tax returns.

Do we bother acting ?

Didn't find your answer?

We have been approached by an individual who has just registered for self-assessment going back 3 years ago. He has previously told us that he has been self-employed for 15 years but he now wants to come clean and declare the last 4 (different trade).

Is there anyone here that would touch this with a barge pole or should we at least be filing a SOCA report.

thanks

Replies (6)

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David Winch
By David Winch
13th Oct 2016 15:39

I am not sure what you mean by "he now wants to come clean and declare the last 4". If he wants to "come clean" he wants to declare the entirety of his previous under-declarations of income chargeable to tax. It appears that means income for the past 15 years.

Please clarify.

David

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By doorsteps
13th Oct 2016 15:46

That was my point entirely. I don't see how he can pick and choose. The 11 years before related to a completely different trade in another part of the country.

I indicated that HMRC would not be too lenient and just go back 6 years. He is 60 years old and has no funds. I suppose I am just wanting my fears confirmed that it has to be all or nothing in the way of a declaration.

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David Winch
By David Winch
13th Oct 2016 16:15

It seems to me that the client is not proposing to come clean. There are things which you cannot polish!

It does seem to me that you have an obligation under s330 Proceeds of Crime Act 2002 / Money Laundering Regulations 2007 to submit a Suspicious Activity Report to the National Crime Agency (which has taken over the responsibilities of SOCA) - assuming you suspect that some tax liabilities will have arisen in respect of the 11 earlier years.

David

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By bernard michael
14th Oct 2016 09:56

He is still a prospective client. You've answered the question yourself in that he has no money Therefore don't touch it.

David
Does the OP still have to complete a SOCA report if he is not yet a client ?

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Replying to bernard michael:
David Winch
By David Winch
14th Oct 2016 12:11

Yes. The legislation does NOT refer to suspicions "of clients" - it refers to suspicions based on information which has come to you in the course of your activity in the regulated sector. So that includes suspicions of potential clients for whom you ultimately do not act.

David

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By doorsteps
14th Oct 2016 10:02

Thanks for confirming. We have now declined to act. I'm sure he will find someone who will help him.

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